OSM Worldwide: 2024 Holiday Season Shipping Schedule

It’s no secret that shipping costs can eat into your bottom line as a brand. However, with some strategic planning and optimization, you can significantly reduce shipping expenses while still delivering a polished customer experience. In this article, we'll explore 3 simple tips to reduce shipping costs without compromising on quality.

Optimize Packing

One of the easiest ways to reduce shipping costs is to optimize packing, and there’s a variety of simple ways to get started:

• Right-size Packaging: Choose packaging that fits your products snugly to minimize wasted space and avoid dimensional weight charges. Using smaller boxes or envelopes can often result in lower shipping costs. Not to mention, correctly packaging products helps to reduce the risk of damage in transit, further reducing the costs, and time, associated with damage claims.
• Lightweight Materials: Use lightweight packing materials such as bubble wrap, corrugated cardboard or air pillows to protect items without adding unnecessary weight to packages. This helps to lower shipping costs for shipments priced by weight.
• Eliminate Excess Packaging: Avoid overpacking by using just enough cushioning to protect items during transit. Removing excess packaging materials can reduce package dimensions and weight, leading to lower shipping costs. However, while minimizing packaging, it’s important to still use a sufficient amount to reduce the risk of damages during transit.

Rate Shop

Just as you would compare the costs of products in the supermarket, shipping costs are no different. 

• Use Shipping Software: Instead of having to manually compare rates and shipping speeds across various carriers, leverage shipping software that does it all for you. VESYL serves up the most competitive shipping rates in real time across multiple carriers so you can make the best informed choice. The software also allows you to pre-define frequently used package dimensions, to not only save on costs, but also time. 
• Negotiate Carrier Rates: If you have a high shipping volume, consider negotiating discounted rates directly with carriers. Many carriers offer volume-based discounts or incentives for loyal customers, which can help lower your overall shipping costs. However, it’s important to note that this option does limit flexibility in case of shipping disruptions. 

Learn more about VESYL's automations to reduce costs and time.

Utilize Discounted Supplies

Shipping supplies can add up quickly, but there are ways to save on packaging materials:

• Bulk Ordering: By analyzing order history, you can identify the most used package sizes and types and look at bulk ordering to reduce costs. This includes boxes, envelopes, tape, and labels in bulk to fully take advantage of volume discounts, helping you save on packaging costs in the long run.
• Utilize Carrier Supplies: Take advantage of free or discounted shipping supplies offered by carriers. Many carriers provide free packaging materials, such as boxes and envelopes, to their customers. By using these supplies, you can save on packaging costs and ensure compatibility with carrier specifications.
• Consider Eco-Friendly Options: Look for environmentally friendly packaging materials that are not only cost-effective but also sustainable. Recycled cardboard boxes, biodegradable packaging peanuts, and compostable mailers are eco-friendly alternatives that can help reduce shipping costs, improve brand reputation all while minimizing environmental impact.

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By implementing these three simple tips, you can effectively reduce shipping costs for your e-commerce business. Remember to regularly review and adjust your shipping strategies to ensure ongoing cost savings and optimal efficiency. With a little planning and optimization, you can streamline your shipping process and boost your bottom line while providing excellent service to your customers.

With the increase in online shopping and the convenience associated with it, consumers expect seamless and timely delivery of their orders. Therefore, streamlining e-commerce logistics has become a crucial aspect for businesses looking to meet these expectations while reducing costs and time. In this article, we delve into the importance of streamlined logistics for e-commerce businesses and discuss five top strategies to help businesses streamline their logistics operations.

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The Importance of Streamlined Logistics for E-commerce Businesses

A well-oiled ecommerce logistics machine is the backbone of any successful e-commerce business. Firstly, it ensures the delivery of an exceptional customer experience, where the efficient handling of transactions, order processing, inventory updates, and timely deliveries increases customer satisfaction and boosts the likelihood of repeat purchases.

Along with satisfied customers, streamlined ecommerce operations also contribute to organized growth for companies. By optimizing workflows and removing bottlenecks, businesses can manage higher order volumes without compromising on quality or productivity.

In addition, well-organized operations lead to cost reductions and increased profit margins. Through error prevention, labor savings, and enhanced stock management, companies can save money and increase their profits.

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Top Strategies for Streamlining E-commerce Logistics

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Optimize Inventory Management

Effective inventory management is key to streamlined logistics. Adopting just-in-time inventory practices, employing demand forecasting tools, and utilizing SKU rationalization can help businesses maintain optimal stock levels, reduce holding costs, and minimize the risk of stockouts or overstock situations. However, it is important to note that in the case of any supply chain disruptions, for example during COVID-19, just-in-time inventory practices can negatively impact a business and the customers. Therefore it is crucial with these practices to take the correct precautions.

Additionally, utilizing inventory management software allows businesses to maintain a live, up-to-date monitoring of their stock levels while automating tasks such as order tracking and restocking alerts. This not only reduces errors but also improves efficiency by simplifying processes related to inventory management.

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Implement a Flexible Fulfillment Strategy

Flexibility in fulfillment is vital to meet varying customer demands. Implementing multiple fulfillment options such as dropshipping, third-party fulfillment centers, or a hybrid approach allows businesses to adapt to changing market conditions and scale their operations efficiently. This flexibility ensures that orders can be fulfilled quickly and cost-effectively, even during peak seasons.

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Prioritize Last-Mile Delivery Optimization

The last mile of delivery is often the most critical and expensive part of the logistics process. Optimizing last-mile delivery through route optimization, real-time tracking, and leveraging alternative delivery methods like lockers or local pickup points can significantly improve delivery efficiency. Additionally, exploring sustainable and eco-friendly last-mile delivery options can align with growing consumer preferences for environmentally responsible practices.

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Utilize Integrated Shipping Solutions

Integrated shipping solutions involve the incorporation of logistics components, such as order processing, inventory management, and transportation, into a unified system. By leveraging shipping solutions, companies can automate and streamline processes, reducing manual errors and operational inefficiencies, helping them to better manage their logistics. This approach not only enhances overall efficiency but also results in faster order fulfillment, improved customer satisfaction, and reduced shipping costs. The integration of shipping carriers, real-time tracking, and analytics further empower businesses to make data-driven decisions, enhancing visibility and control over their logistics operations

With carrier, speed, shipment size and cost comparisons in one place, VESYL allows shippers to quickly define their needs and shop the best-in-class rates. Learn more about Quick Ship and its capabilities.

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Forecast And Plan Demand

Forecasting and planning demand is a key for streamlining e-commerce logistics. By employing advanced analytics, data modeling, and historical sales data, businesses can accurately anticipate future product demand. This enables them to make informed decisions about inventory levels, procurement, and distribution.This helps to minimize the risk of stockouts or excess inventory, optimizing warehouse space and reducing carrying costs. Additionally, it allows for better coordination with suppliers and logistics partners, ensuring timely and cost-effective replenishment of stock.

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Conclusion

Mastering logistics is a must for sustained growth and success in the e-commerce landscape. Streamlining logistics not only enhances operational efficiency but also directly influences customer satisfaction and brand loyalty. By embracing advanced technologies, optimizing inventory management, fostering strong partnerships, implementing flexible fulfillment strategies, and prioritizing last-mile delivery optimization, e-commerce businesses can position themselves for long-term growth and success.

With Black Friday and the holiday season just around the corner, businesses can expect a surge of shoppers eager to get in the gifting spirit and take advantage of seasonal deals. This influx brings a great opportunity for increased sales, but it also comes with the complexities of increased shipping demands.

To keep up with the growing volume of orders, carriers like USPS have announced temporary price adjustments for the 2024 peak holiday season. Effective from October 6, 2024, through January 19, 2025, these rate changes will impact Priority Mail Express, Priority Mail, and USPS Ground Advantage shipments.

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What Are Peak Season Surcharges?

These holiday surcharges help USPS cover additional costs associated with labor, fuel, and supplies during the peak shipping months to ensure they can maintain service standards while managing higher volumes. Staying informed about these changes is key to plan accordingly and maintain a seamless delivery experience for customers, so we’ve packaged them up for you below.

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Commercial Increases

Priority Mail and USPS Ground Advantage: Zones 1-4

• $0.30 increase for 0-3 lbs.
• $0.45 increase for 4-10 lbs.
• $0.75 increase for 11-25 lbs.
• $3.00 increase for 26-70 lbs. 

Priority Mail: Zones 5-9

• $0.70 increase for 0-3 lbs.
• $1.25 increase for 4-10 lbs.
• $2.75 increase for 11-25 lbs.
• $7.00 increase for 26-70 lbs.

USPS Ground Advantage: Zones 5-9

• $0.35 increase for 0-3 lbs.
• $0.75 increase for 4-10 lbs.
• $1.25 increase for 11-25 lbs.
• $5.50 increase for 26-70 lbs.

Priority Mail Express: Zones 1-4

• $1.00 increase for 0-3 lbs. 
• $1.50 increase for 4-10 lbs.
• $3.50 increase for 11-25 lbs.
• $8.95 increase for 26-70 lbs

Priority Mail Express: Zone 5-9

$1.75 increase for 0-3 lbs.

$3.95 increase for 4-10 lbs.

$7.50 increase for 11-25 lbs.

$13.00 increase for 26-70 lbs.

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Retail Increases

Priority Mail and USPS Ground Advantage: Zones 1-4

$0.40 increase for 0-3 lbs.

$0.55 increase for 4-10 lbs

$0.95 increase for 11-25 lbs. 

$4.00 increase for 26-70 lbs.

Priority Mail: Zones 5-9

$0.90 increase for 0-3 lbs.

$1.45 increase for 4-10 lbs.

$3.25 increase for 11-25 lbs.

$8.50 increase for 26-70 lbs.

USPS Ground Advantage: Zones 5-9

$0.50 increase for 0-3 lbs.

$1.00 increase for 4-10 lbs.

$2.00 increase for 11-25 lbs.

$5.85 increase for 26-70 lbs.

Priority Mail Express: Zones 1-4

$1.10 increase for 0-3 lbs.

$2.00 increase for 4-10 lbs.

$3.90 increase for 11-25 lbs.

$9.75 increase for 26-70 lbs.

Priority Mail Express: Zones 5-9

$2.00 increase for 0-3 lbs.

$4.85 increase for 4-10 lbs.

$9.00 increase for 11-25 lbs.

$16.00 increase for 26-70 lbs.

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How Can Businesses Still Save On Shipping?

Despite the USPS price increases during the holiday season, merchants still have opportunities to save on shipping costs. By using VESYL, brands can shop the best-in-class rates across multiple carriers, streamline operations, reduce labor costs, and minimize errors through automation, further maximizing efficiency and cutting down unnecessary expenses. By streamlining shipping operations, merchants can offset the impact of seasonal surcharges while still delivering an exceptional customer experience during the busiest time of the year.

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Schedule a quick 15-minute call with us and we’ll show you how!